Why the habit of saving is important for you, economy?

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Will you believe if someone, who has higher position in a prestigious company, says he or she has no money? Shocking may it seem, but possibly it’s the ugly truth. Keeping money is not about the position nor intelligence of people but their financial behavior.  The bad news is even most Filipinos are not keen on saving money according to a report. Would you like to make a difference by knowing and doing the habit of saving?

According to the report of Manila Bulletin, the BSP or Bangko Sentral ng Pilipinas (Central Bank of the Philippines)  together with its partners conducted “National Baseline Survey on Financial Inclusion,” which found out that only 43% of Filipinos who have savings, while 25 percent of them do not save and 32% stop saving.  Meanwhile, only 33% of those who have savings put their money in the banks.

To counter issues related to this, BSP collaborated with 12 other government agencies including Commission on Filipinos Overseas, Department of Education, Department of Trade and Industry, Philippine Deposit Insurance Corporation, Securities and Exchange Commission, and Department of Finance to form National Strategy for Financial Inclusion (NSFI).  NSFI’s mission is to provide helpful financial services, products, and protections for various markets.  The survey mentioned above is part of NSFI’ program.

On the other note, the best way to save is first make it a habit to keep money.  It’s not about the huge amount, but keeping it persistently and consistently.  In their feature story, PBS shared that it’s better to automatically keep 10% to 15% of your income when you get your salary, do it as early as now, and create separate cash reserves (one is for your emergency fund).

“Age 65 may seem like a million years from now, but the truth is, saving small amounts every day, every week, every month can really add up, and it’s very empowering. The difference between starting at age 23 versus age 33 can be thousands or tens of thousands of dollars because money allowed to compound tax-free for many years grows exponentially. That’s why it’s key for people in their 20’s to save, even if they think they have no money. Just a little bit really makes a long-term difference,” Get a Financial Life author Beth Kobliner imparted.